Attachment_III_-_GEN_V_FINAL_VERSION_(2).docx

DLA Troop Support -Medical – ATTACHMENT III

Medical Surgical Prime Vendor GEN V DEFINITIONS

Definitions Air Mobility Command (AMC): A major command. Responsive air mobility promotes stability in regions by keeping America’s capability and character highly visible.

Annual Purchase Commitment (APC): A fixed 1 year rate that encompasses 12 months in sales plus a 10% growth rate increase. The sales included in this calculation are all orders placed to the Primary and Backup PVs during said time period unless the order is cancelled by the vendor or customer 5 business days prior to effective date of the distribution fees associated with the APC calculation.

Authorized Customer: Any military or Federal customer placing orders within the MSPV program. These customers include but are not limited to, Federal Government funded activities, Federal Government legislative function activities, and Federal Government contractors under certain circumstances.

Authorized Government Representative (AGR): An individual at the ROF responsible for the choice of the service level options submitted on a Service Level Election Function form. The AGR will serve as a Point of Contact to the Defense Logistics Agency’s Contracting Officer, to the Military Service Representative and to the PV. The AGR is not authorized to change the contract terms.

Back-up Prime Vendor (PV): A Back-up PV can receive routine day-to-day support (non-readiness) orders, or portions of orders. All orders placed with the Back-up PV will be orders that the primary PV cannot fill. These orders will be considered non-usage data item orders.

Backorder: A PV order for an item not currently in stock but to be sold or delivered by the PV when it becomes available.

Backorder Support: A PV providing backorder service to the customer.

Blanket Purchase Agreement (BPA): A blanket purchase agreement is a simplified method of filling anticipated repetitive needs for supplies or services by establishing “charge accounts” with qualified sources of supply.

Clinical Advisory Committee (CAC) is chartered to review and coordinate the standardization of medical materiel which is not under the purview of the DOD Pharmacy and Therapeutics Committee. The CAC will guide development and adoption of medical materiel standardization business practices and initiatives for both institutional and operational settings within the Military Health System (MHS). The CAC will act as the authoritative clinical voice in review and coordination of all Defense Medical Materiel Standardization Programs (DMMSP) and Defense Medical Logistics (DML) issues.

Commitment Period: The period when a customer transitions its PV support to the Primary PV and Back-up PV selected by the DLA Troop Support Medical Directorate. Each customer has a specific transition date.

Contractual Required Equal/Exceed Ship Total (CREST): The whole number quantity the PV is required to ship each month for a given usage data item based on the requirement to provide 110% of the monthly usage data item quantity provided to PV.

CONUS: Located within the continental United States.

Cost Recovery Rate (CRR): A DSCP Medical administrative fee applicable to all orders except credit account orders.

Customer: A term used to discuss one or more of the following: ROFs, MOFs, and Quasi-MOFs.

Defense Finance and Accounting System (DFAS): The accounting firm of the Department of Defense (DoD). DFAS is responsible for identifying and implementing finance and accounting requirements.

Defense Health Agency Medical Logistics Division (DHA MEDLOG): is an entity intended to provide the operational infrastructure needed to support DML initiatives. The DHA MEDLOG will be instrumental in establishing and supporting the Defense Medical Materiel Standardization Program (DMMSP).

Defense Medical Logistics (DML) is a term used to describe the collaboration of medical logistics organizations and activities of the Service Components and Defense Agencies in providing the specialized products and services needed by military healthcare across the range of military operations. Among the primary DML goals is developing opportunities for improved inter-Service collaboration in specific business processes intended to achieve measurable improvements in commonality and interoperability of materiel capabilities across Services as well as between institutional and operational Health Service Support (HSS) environments.

Defense Medical Materiel Standardization Program (DMMSP) aims to promote enterprise wide product standardization as well as operational (readiness) product standardization resulting in committed volume purchasing of high-quality medical products available through the PV. Program goals include leveraging volume of purchases to reduce/avoided costs, improving supply chain responsiveness, strengthening business relationships with suppliers, increasing customer access to standardized products, and increasing compliance with clinically driven standardization decisions.

Defense Medical Logistics Enterprise Solution (DML-ES): The DoD’s standard medical materiel management system supporting Service logistics.

Delayed Delivery: Delayed Delivery is a process which enables the Services to order material for future delivery to support construction and maintenance of Service assemblages, as well as supporting other contingency operations which require future deliveries.

Delivered Unit Price: The product’s delivered unit price shall be as follows:

For DAPA/FSS/National Contract/BPA items: The price of the product, as negotiated and published on a DAPA, PLUS the PV’s distribution fee, plus the applicable Cost Recovery Rate (CRR).

In order to synchronize pricing in all systems, the following calculation shall be performed by the Vendor's operating system to accomplish accurate pricing: Product price multiplied by the distribution fee factor multiplied by the Cost Recovery Rate Factor. Rounding shall be applied to the resultant of the calculation. The delivered unit price will reflect two decimal places (the third decimal place will be rounded down for “4” and below, and will be rounded up for “5” and above).

The delivered unit price is to be the only price visible to the customer. At the time of award, DSCP will make available to the PV, all current product and pricing information appearing on a DAPA. The CRR may change, normally on October 1st of each year. Also, there may be more than one CRR in the contract and the PV must be able to accommodate all of them.

Delivery Site: Any delivery point located within an ROF or within the same installation as the ROF.

Distribution and Pricing Agreement (DAPA): A DAPA establishes the DSCP Contracting Officer’s fair and reasonable price of an item to be distributed by the PV. (See Regional Incentive Agreement definition also.)

Distribution Center (DC): The warehouse where the PV stocks its materiel and/or presents its materiel for shipment.

DoD ROFs: Army, Navy, Air Force, and Marine facilities. All other customers are considered Non-DoD ROFs.

Electronic Data Interchange (EDI): The electronic communication of business transactions, such as orders, confirmations and invoices, between organizations. Third parties provide EDI services that enable organizations with different equipment to connect. Although interactive access may be a part of it, EDI implies direct computer-to-computer transactions into vendors' databases and ordering systems.

Enterprise Business Systems (EBS): Formerly referred to as Business Systems Modernization (BSM). EBS is the replacement for DLA’s Legacy financial system. It is the billing and paying mechanism for the Prime Vendor Program. The main system used for these purposes is Systems Applications Products (SAP).

Estimated Ship Date (ESD): An Estimated Ship Date is the date the customer can expect the vendor to ship the ordered item.

Extensible Markup Language (XML): An open standard for describing data from the World Wide Web Consortium (W3C). It is used for defining data elements on a Web page and business-to-business documents. XML defines what elements contain and tags to be defined by the developer of the page. Thus, virtually any data items, such as "product," "sales rep" and "amount due," can be identified, allowing Web pages to function like database records. By providing a common method for identifying data, XML supports business-to-business transactions and has become "the" format for electronic data interchange and Web services.

Federal Supply schedules (FSS): The Federal Supply Schedule, also known as a Multiple Award Schedule (MAS), is a listing of contractors that have been awarded a contract by GSA that can be used by all Federal agencies.

Fill-Rate: A measurement of the PV’s order fulfillment performance. The fill-rate percentage will be calculated as follows:

Global Trade Item Number (GTIN) : An identifier for trade items developed by GS1 (comprised of the former EAN International and Uniform Code Council. Such identifiers are used to look up product information in a database (often by inputting the number through a bar code scanner pointed at an actual product) which may belong to a retailer, manufacturer, collector, researcher, or other entity. The uniqueness and universality of the identifier is useful in establishing which product in one database corresponds to which product in another database, especially across organizational boundaries.

Global North Region: Also known as Global North, includes Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, Connecticut, New Jersey, New York, Pennsylvania, Delaware, Virginia, West Virginia, North Carolina, Ohio, Kentucky, Michigan, Indiana, Illinois, Wisconsin, US European Command (EUCOM), the US Central Command (CENTCOM), and US Africa Command (AFRICOM) requirements. Please note that the bulk of the Navy Fleet requirements are delivered to Defense Depot Norfolk Virginia (DDNV,) which is located in the Global North Region, the rare exception being when ships are docked in CONUS ports.

Global South Region: Also known as Global South, includes South Carolina, Tennessee, Georgia, Florida, Alabama, Mississippi, Arkansas, Louisiana, Oklahoma, Texas, US Southern Command (SOUTHCOM); and US Northern Command (NORTHCOM) requirements, excluding requirements within the United States

Global West Region: Also known as Global West, includes Alaska, Minnesota, Iowa, Missouri, North Dakota, South Dakota, Nebraska, Kansas, Montana, Wyoming, Colorado, New Mexico, Idaho, Utah, Arizona, Washington, Oregon, California, Nevada and US Pacific Command (PACOM) requirements.

Incentive Agreement (IA): Pricing agreement with vendor who has been added to a Qualified Supplier List by clinical determination and who has offered more competitive incentive pricing than any other QSL vendors.

Kitting: Previously known as Deployable Medical System (DEPMEDS): A package of medical supplies assembled to be deployed at a site.

Master Ordering Facility (MOF): A Master Ordering Facility (MOF) is any DoD activity authorized to place orders with a prime vendor for any external customer. The external customer may or may not be a Routine Ordering Facility (ROF) under an existing Prime Vendor (PV) contract. The external customer may be within or outside the same geographical region as the MOF. The external customer may be either a CONUS or OCONUS based customer.

(See Attachment II for a list of MOFs.)

Medical Materiel Enterprise Standardization Office (MMESO): Led by the DSLs and the DSCs - North, South, West, Europe and Pacific, working under DHA MEDLOG to create Enterprise-wide Standardization Actions, including Incentive Agreements (IA) and Voluntary Incentive Pricing Agreements (VIPA).

OCONUS: Located outside of the continental “United States”.

Outside Delivery Site: Any delivery point located outside the installation or general location of the ROF.

Ordering Facility: Department of Defense (DoD) activity authorized to place orders with a prime vendor. This term is used when both a ROF and a MOF is discussed.

Primary PV: selected to provide primary support for routine day-to-day orders. The primary shall distribute the Med/Surg products/medical equipment to the ordering facilities within the designated Global Region. Orders must always first be placed with the Primary PV, with the exception of instances where the PV has not assigned a Prime Vendor Order Number (PVON) in the Medical Master Catalog (MMC,) or whenever the item is not executable via the MMC. The Primary PV must support all required electronic transactions.

The Primary PV shall be an active partner in planning for product transition once a standardization decision (typically resulting in an IA) has been approved for implementation within a Medical Materiel Enterprise Standardization Office (MMESO) region and/or across the enterprise. The Primary PV must support customers to update usage data item lists, and bring the new required usage products into the DC.

PV Customer Service Representative: A PV employee who is expected to perform the following types of tasks to assist the ROF in: identifying DAPA/FSS usage data items, converting credit card purchases, achieving the contractual fill-rate, reviewing PV-supplied reports, problem resolution, credit balance review, review open back orders, web-based ordering system training, exploring avenues to assist the ROF in saving money and any additional other duties detailed in the SOW.

PV’s web-based proprietary data warehouse access: A tool expected to include at a minimum, standard report formats utilizing a database containing customer sales/purchases, product usage, contracts, pricing, and order/shipment information.

PV Order Number (PVON): A number assigned by the PV for a DAPA/FSS/National Contract/BPA/ PVE DAPA item to facilitate ordering.

PV War Readiness Materiel (PVWRM): This provision provides Med/ Surg surge and sustainment support of contingency operations..

Incentive Agreement (IA): An incentive-priced addendum to a DAPA with customer committed volume.

Required Delivery Date (RDD): The promised delivery date for an item which the vendor must confirm within 72 hours. The RDD should not exceed 6 months from the date of order placement. Pricing will not be limited to the date of the order for Delayed Delivery orders (DDOs.) A onetime price change per line may be requested.

Routine Ordering Facility (ROF): An ordering facility within this Global Region. (See Attachment II for a list of ROFs). An ordering facility may include any Authorized Customer.

Secondary PVWRM PV: The PV selected to provide secondary support for PVWRM for this Global Region. (Firms offering only as a Back-up PV are not eligible to be a Secondary PV.)

Service Level Election Function (SLEF): An electronic form completed by the ROF/MOF that formalizes its choice of service level options and sets the basis for its Primary PV distribution fee. The SLEF is a binding agreement between the PV and the ROF/MOF.

Stockless Delivery Service Election: A comprehensive acquisition and materiel management program available to each ROF or individual departments (e.g., the Operating Room) within a ROF. The PV will have access to the ROF during the hours of 0800 – 1700, local time of the ROF, Monday through Friday, for routine stock replenishment. Only ordering facilities located within the US, including Hawaii and Alaska if the PV has a Distribution Center located within the Region, are eligible for this service.

Transportation Control Movement Document (TCMD) : Transportation Control and Movement Documents (TCMDs) are multi-purpose forms used to control the movement of cargo within the Military Transportation System.

Transition Date: The date the PV is required to begin servicing the customer.

United States (US or U.S.): The 49 United States (includes Alaska) and Washington DC. (Hawaii is part of PACOM and is not part of the US in this definition).

Universal Data Repository (UDR): The Government’s proprietary catalog available to the ordering facility, classifying items by functional equivalency.

Universal Product Number (UPN): A unique barcode identifier for med/surg products.

Usage Data Items: Items, with associated quantities, designated by the ordering facility as those that will be ordered under the PV program.

Voluntary Incentive Pricing (VIP): An incentive-priced addendum to a DAPA volunteered by the DAPA holder for a subset of customers (examples: a TRICARE region, Service, readiness-focused/”operational” DODAACs) without requiring customer(s) to commit volume.

Web-based Ordering System: A PV-supplied product ordering system accessible through the Internet via any standard web-browser.

Wide Area Workflow (WAWF): The accepted electronic form for submission of payment requests and receiving reports

Wound Closure Inventory Management : A comprehensive acquisition and materiel management wound closure program supporting a department (e.g., the Operating Room) within an ROF. This option offers a low unit of measure wound closure inventory management system that is designed to reduce inventory investment by identifying ROF improvements to both efficient ROF on-site storage strategy and more efficient wound closure product ordering. This is essentially a stockless service usually benefiting only specialized customers within the ordering facility, such as the Operating Room. Only ROFs located within the US and Hawaii and Alaska if the PV has a Distribution Center located within the Region, are eligible for this service.